Smallholders
in a remote village in Tanzania, along a rough road which is almost
impassable in the rainy season, were also encouraged to grow chillies.
Here there were few alternative income-earning opportunities, so
most households had under-utilized land and labour. However, it
was difficult for the company to service them and collect their
crop, particularly in the early stages of the partnership when the
amount of produce was small. The company offered smallholders a
higher price for dried chillies delivered to an urban collection
point. They were able to dry the chillies at home and deliver them
to the market when the rains allowed.
Analysis:
Access was bad and co-ordination difficult, but the under-utilized
land and labour and lack of alternative uses ensured smallholders
remained interested. The exporter's adaptation of price and collection
procedures tipped the balance sufficiently and the enterprise succeeded.
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